Red Sea Crisis Competition of Salalah ,Djibouti and Jebel Ali ports Maritime Tickers.jpg

Red Sea Crisis : Competition of Salalah ,Djibouti and Jebel Ali ports

Container News carried out a competition analysis between the key ports of UAE’s Jebel Ali, Oman’s Salalah and Djibouti, in order to gain valuable insights about the performance in tactical (ports) and operational level (country’s maritime performance).

For this purpose, we used a compound indicator named Maritime Innovation & Performance Index, consisting of Frontier Technology Index, Linear Connectivity and Port Throughput.

Also, the Port Connectivity index was used for conducting a correlation analysis between them.

Modest maritime performance

UAE exhibits a steadily high performance across the years, which can be attributed to high levels of technological readiness, consistent port throughput, and superior linear connectivity.

Oman shows a gradual decrease in its performance index, particularly noticeable from 2022 to 2024. Djibouti has a relatively flat trend with a slight increase in 2023 followed by a decrease in 2024.

This implies stable yet modest maritime performance, aligning with its lower scores in port connectivity.

Jebel Ali Port

Jebel Ali Port is one of the world’s most advanced ports and has a significant strategic advantage due to its location and infrastructure.

As such, it consistently maintains a high port connectivity index, indicating a robust and stable port operation.

Key logistics hub

On the other hand, Salalah serves as a key logistics hub in the Arabian Sea, positioned advantageously on major shipping lanes connecting the East and the West. Despite its efficiency, it faces stiff competition from other regional ports.

Djibouti Port

It shows moderate connectivity, maintaining a steady level over the years, however, there is a significant decline after 2023, which could justify the latest investment in new port equipment.

Djibouti is aiming to leverage its strategic location at the mouth of the Red Sea to serve as a major transshipment hub for East Africa, traditionally following the model set by Jebel Ali, which is located in another crucial maritime spot (straight of Hormuz).

Sea intelligence : Regional impact of the Red Sea crisis 2024

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Operational metrics

Djibouti’s connectivity index is relatively stable something that allowed the port to overpass Salalah in the middle of 2023, indicating a significant competition between the two ports.

The UAE’s high scores in operational metrics are indicative of effective integration of technology and efficient management practices at its ports, primarily Jebel Ali.

This is reflective of its overall strategic maritime position and operational excellence. Meanwhile, the high connectivity of Jebel Ali showcases its tactical advantage in handling transshipment and large-scale operations

Competitive stance

Oman and Djibouti demonstrate lower innovation and performance scores, suggesting areas for development in technology integration and operational practices to enhance their competitive stance. Additionally, the two ports have relatively limited power to compete directly with the giant port of Jebel Ali. Instead their role is to focus more into regional trade networks and specialized services.

Quality level

It can be said that both ports of Djibouti and Salalah are about to involve into a high competitive situation, considering the fact that Chinese investments in Djibouti are about to elevate the quality level of the port.

This potential scenario could alarm Salalah in order to start improving its tactical profile, although it maintains a big difference in operational level.

Efficient container port

It is noteworthy that Salalah port has retained its place as the second most efficient container port in the world for the second year in a row.

The ranking is taken from the 2022 Container Ports Performance Index (CPPI) published by the World Bank and S&P Global. The Port of Salalah also claimed the first position for the West Central and South Asia Region.

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